English
Vietnam plans to move up in business ranking
The Hanoitimes – The Ministry of Planning and Investment (MPI) has recently proposed the Prime Minister to issue a resolution on business environment and competitive edge in 2018, aimed to improve Vietnam’s business ranking.
Under the proposal, Vietnam targets to move up 8-18 places to rank 50-60 among 190 countries in the World Bank’s Doing Business report.
If being approved, Vietnam’s business climate will see a drastic change and firms will benefit much thanks to the simplification of procedures and the fee reduction.
If being approved, Vietnam’s business climate will see a drastic change and firms will benefit much thanks to the simplification of procedures and the fee reduction.
The MPI’s proposal also mentions to the enhancement of competitive edge of the tourist and logistics sectors to support the restructuring of the nation’s economy in general and the sectors in particular.
The Government has in recent years enhanced the efforts to improve the business climate and national competitiveness as well as a number of policies to support businesses, including resolutions 19 and 35.
However, many commitments to cut costs through the simplification of business conditions and specialized inspection as well as management reforms as required by the resolutions haven’t done. Some ministries, cities and provinces haven’t paid due attention to meet the commitments.
It was reported that costs for specialized inspection of a firm in Ho Chi Minh City last year were some VND700 million per month, nearly doubling in 2016 due to the application of new fee rates.
The ratio of import consignments that must have specialized inspection before customs clearance now also remains at 30-35 percent, much higher than the 15 percent rate targeted for 2017.
Under the World Bank’s Doing Business latest report released last year, Vietnam moved up 14 places to rank 68 among 190 countries.
The World Bank’s report acknowledged significant improvements of Vietnam in the areas of getting electricity, getting credit, paying taxes, trading across borders and enforcing contracts.
“Vietnam increased the reliability of power supply by rolling out a Supervisory Control and Data Acquisition automatic energy management for the monitoring of outages and the restoration of service,” the report wrote.
By adopting a new civil code that broadens the scope of assets that can be used as collateral, the country also strengthened access to credit.
The country also made paying taxes easier by abolishing the 12-month mandatory carry forward period for VAT credit and by introducing and enhancing systems for filing and paying taxes online.
Exporting and importing were also made easier with automated cargo clearance system and extension in the operating hours of the customs department.
In addition, Vietnam, by adopting a new code of civil procedure and by introducing a consolidated law on voluntary mediation, strengthened its regulatory environment and made enforcing contracts easier, the report said.
Vietnam ranked fifth in ASEAN, coming after Singapore, Malaysia, Thailand and Brunei.
Doing Business captures the effectiveness and quality of business regulations based on 11 indicator sets, namely starting a business, resolving insolvency, enforcing contracts and paying taxes, as well as trading across borders, protecting minority investors, getting credit and registering property, along with getting electricity, dealing with construction permits and labor market regulation.
The World Economic Forum’s Global Competitiveness Report 2017-18 issued in September also ranked Vietnam 55th, up five places from last year, acknowledging improvements in institutions, infrastructure, macro-economic environment, trade and health and primary education.
The Government has in recent years enhanced the efforts to improve the business climate and national competitiveness as well as a number of policies to support businesses, including resolutions 19 and 35.
However, many commitments to cut costs through the simplification of business conditions and specialized inspection as well as management reforms as required by the resolutions haven’t done. Some ministries, cities and provinces haven’t paid due attention to meet the commitments.
It was reported that costs for specialized inspection of a firm in Ho Chi Minh City last year were some VND700 million per month, nearly doubling in 2016 due to the application of new fee rates.
The ratio of import consignments that must have specialized inspection before customs clearance now also remains at 30-35 percent, much higher than the 15 percent rate targeted for 2017.
Under the World Bank’s Doing Business latest report released last year, Vietnam moved up 14 places to rank 68 among 190 countries.
The World Bank’s report acknowledged significant improvements of Vietnam in the areas of getting electricity, getting credit, paying taxes, trading across borders and enforcing contracts.
“Vietnam increased the reliability of power supply by rolling out a Supervisory Control and Data Acquisition automatic energy management for the monitoring of outages and the restoration of service,” the report wrote.
By adopting a new civil code that broadens the scope of assets that can be used as collateral, the country also strengthened access to credit.
The country also made paying taxes easier by abolishing the 12-month mandatory carry forward period for VAT credit and by introducing and enhancing systems for filing and paying taxes online.
Exporting and importing were also made easier with automated cargo clearance system and extension in the operating hours of the customs department.
In addition, Vietnam, by adopting a new code of civil procedure and by introducing a consolidated law on voluntary mediation, strengthened its regulatory environment and made enforcing contracts easier, the report said.
Vietnam ranked fifth in ASEAN, coming after Singapore, Malaysia, Thailand and Brunei.
Doing Business captures the effectiveness and quality of business regulations based on 11 indicator sets, namely starting a business, resolving insolvency, enforcing contracts and paying taxes, as well as trading across borders, protecting minority investors, getting credit and registering property, along with getting electricity, dealing with construction permits and labor market regulation.
The World Economic Forum’s Global Competitiveness Report 2017-18 issued in September also ranked Vietnam 55th, up five places from last year, acknowledging improvements in institutions, infrastructure, macro-economic environment, trade and health and primary education.
Source: http://hanoitimes.com.vn/economy/2018/01/81E0C04B/vietnam-plans-to-move-up-in-business-ranking/